Instacart Shares Sink as Lockup on Insider Shares is Lifted

Instacart, the popular grocery delivery service, has announced that it will be lifting the lockup on insider shares on Feb. 15. This move will allow early investors such as Sequoia Capital and D1 Capital Partners to sell or distribute their positions. Not only will the company's officers and directors be able to cash in, but so will "substantially all of Instacart's common stock and securities exercisable for or convertible into Instacart's common stock."

Originally scheduled to expire 180 days after Instacart shares started trading, the lockup is being lifted after just 150 days. This decision comes as rumors circulate that Instacart could be an attractive acquisition target for Uber, boosting the stock's performance in recent weeks.

However, Instacart shares have faced challenges in the public market due to concerns over slowing growth and fierce competition in the grocery delivery sector. Despite enjoying a rally of over 20% since early January, the stock took a hit on Tuesday, declining by 6% to $25.53.

Investors will be keeping a close eye on Instacart as it prepares to report its fourth quarter financial results after the close of trading on Feb. 13.